employees perceptions of benefits of corporate social
TRANSCRIPT
EMPLOYEES PERCEPTIONS OF BENEFITS OF CORPORATE SOCIAL
RESPONSIBILITY BY SAFARICOM LIMITED
MARTHA ADONGO ATUDO
A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE
IN HUMAN RESOURCE MANAGEMENT, SCHOOL OF BUSINESS, UNIVERSITY OF
NAIROBI
2014
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DECLARATION
I declare that this research project is my original work and that it has not been presented for the
award of a degree in any university.
Signature ________________ Date __________________________
MARTHA ADONGO ATUDO
D64/60702/2013.
This research project has been submitted for examination with my approval as the
University Supervisor
Signed: ……………………………………………….. Date: …………………………...
PROF. PETER K’OBONYO
SCHOOL OF BUSINESS
UNIVERSITY OF NAIROBI
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DEDICATION
I dedicate this research proposal to mother, sisters and brothers for their unlimited understanding
in allowing me pursue this Msc (Human Resource Management) program and for their prayers
and support.
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ACKNOWLEDGEMENTS
Many people have encouraged and supported me throughout the writing of this research
proposal. I would like to acknowledge their contribution. Prof. K’Obonyo for his time and
patience to scrutinize this proposal. Prof. K’Obonyo for the invaluable support in concluding this
project. You have contributed immensely in shaping this study through your advice, directions,
suggestions and criticisms. The staff of Safaricom Limited for providing me with the necessary
information for this proposal. To my dear friend Joshua and mother for your patience,
understanding, encouragement, prayers and support. God Bless You All. Finally I am most
grateful to God the Almighty without whose provision of life and good health I would not have
made it this far.
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TABLE OF CONTENT
DECLARATION………………………….......................……………………………………II
DEDICATION………………………………………………………………………………...III
ACKNOWLEDGEMENTS……………………………………………………..……………IV
LIST OF TABLES...................................................................................................................VIII
FIGURES……………………………………………………………………………………….IX
LIST OF ACRONYMS AND ABBREVIATIONS.................................................................X
ABSTRACT.................................................................................................................................XI
CHAPTER ONE: INTRODUCTION .........................................................................................1
1.1 Background of the study ..........................................................................................................1
1.1.1 The concept of perception ..............................................................................................2
1.1.2 Corporate Social Responsibility ....................................................................................3
1.1.3 Benefits of Corporate Social Responsibility ..................................................................4
1.1.4 Safaricom Foundation ....................................................................................................5
1.2 Research Problem ...................................................................................................................6
1.3 Research Objective .................................................................................................................8
1.4 Value of the Study ..................................................................................................................8
CHAPTER TWO: LITERATURE REVIEW ...........................................................................10
2.1 Introduction ............................................................................................................................10
2.2 Theoretical Foundation ..........................................................................................................10
2.2.1Social identity theory .....................................................................................................10
2.2.2 Stakeholder theory .........................................................................................................11
2.2.3 Organizational Justice theory ........................................................................................11
2.3 Benefits of Corporate Social Responsibility ..........................................................................12
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CHAPTER THREE:RESEARCH METHODOLOGY ...........................................................14
3.1 Introduction ...........................................................................................................................14
3.2 Research design ....................................................................................................................14
3.3 Target population ..................................................................................................................14
3.4 Data collection ......................................................................................................................14
3.5 Data analysis .........................................................................................................................15
CHAPTER FOUR: DATA ANALYSIS,FINDINGS AND DISCUSSION ...........................16
4.1 Introduction ...........................................................................................................................16
4.2 Response Rate ........................................................................................................................16
4.3 Background Information ........................................................................................................16
4.3.1 Length of service..........................................................................................................16
4.3.2 Level of Education .......................................................................................................17
4.4 Corporate social responsibility activities ...............................................................................18
4.5 Benefits of corporate social responsibility ............................................................................20
4.5.1 Growth in market share ................................................................................................22
4.5.2 Attraction and retention of high quality employees .....................................................22
4.5.3 Enhance brand imagine and reputation........................................................................23
4.5.4 Commitment pride and happiness................................................................................23
4.6 Discussion ...............................................................................................................................24
4.7 Managerial Implication............................................................................................................26
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CHAPTER FIVE: CONCLUSION, SUMMARY AND RECOMMENDATION ................27
5.1 Introduction..........................................................................................................................27
5.2 Summary ...............................................................................................................................27
5.3 Conclusion ............................................................................................................................28
5.4 Recommendation for Further Study......................................................................................29
5.5 Limitation of the study ..........................................................................................................29
REFERENCE ...............................................................................................................................31
APPENDIX:QUESTIONNAIRE ...............................................................................................35
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LIST OF TABLES
Table 4.3 Means and Standard Deviations for responses on benefit attributes………………..21
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LIST OF FIGURES
Figure 4.1 Distribution of the respondents by length of service……………………………….17
Figure 4.2 Classification of respondents by level of education …………………………………17
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LIST OF ACRONYMS AND ABBREVIATIONS
CSR Corporate Social Responsibility
Safaricom Safaricom (K) Limited
CEO Chief Executive Officer
Ms- Excel Microsoft Excel
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ABSTRACT
The aim of the study was to establish benefits of corporate social responsibility at Safaricom
Limited. The study used descriptive research design with a target population of 100 employees
of Safaricom whereby primary data was used. The researcher employed open-ended
questionnaires in order to obtain responses from the sample population. Descriptive data analysis
was employed in analyzing the data presented in the study. Ultimately the research findings
Safaricom practices CSR by choosing its own unique activities. The range of activities the firm is
involved in included provision of good working conditions for employees, enhanced employees’
welfare, truthful advertising, and empowering communities through provision of social services
and food security and environmental conservation. Participation availability of resources,
sustainability of projects, the moral obligation of giving back to the community as well as
various regulations were some of the factors influencing corporate social responsibility practices
adopted by Safaricom Ltd Implementation of CSR activities in the organization was largely done
through employees, volunteers and other key stakeholders. The study further concluded that CSR
needs joint participation of key stakeholders like employees for its sustainability. Attraction and
retention of talented employees, increased growth in market share, enhanced brand image and
reputation and employees get more committed, proud and happy of the organization were some
of the benefits of CSR. It is recommended that Safaricom Limited ought to engage the
stakeholders more to enable them perceive value in all CSR activities so as they support the
firm’s engagement in it. Most interviewees agreed that corporate social responsibility activities
had been of benefit to employees. This was reflected in the improved company image, increased
number of customers, attracting outstanding employees and improved profitability.
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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Corporate Social Responsibility is concerned with the ways in which an organization exceeds its
minimum obligations to stakeholders (Johnson et al, 2010). The direction that corporate social
responsibility takes has several dimensions comprising corporate philosophy, corporate
responsibility and corporate policy. Charitable donations and not for profit organization is an
example of corporate philosophy whereas strategic philosophy involves companies making a
long term commitment to one cause (Cozen, 1996). Employees are important stakeholders as
they play key role in organization success. Employee perception of an organization’s ethics and
social responsibility may influence their attitude and performance which in turn will have effect
on their organization. As key stakeholders employees are often allowed in the CSR activities.
This is important as it allows the organization to effectively interact with employees on CSR
issues.
There are four distinct paths through which employees can benefit from corporate social
responsibility this includes: a sense of security and safety that their material needs will be met,
self-esteem that stems from a positive social identity this is means employees ‘estimation of how
others perceive the firm and how the firm present itself to others, feelings of belongingness and
social makes the employee to have a psychological ownership and sense of responsibility , and
existential meaning and a deeper sense of purpose at work increase employee life satisfaction
and emotional well being . CSR increases perceived corporate morality, which in turn can help to
satisfy employees’ needs for security, self-esteem, belongingness, and a meaningful existence
(Aguilera et al., 2007; Rupp, 2011; Rupp, Ganapathi, Aguilera, & Williams, 2006).
Safaricom Foundation has formed partnerships with local communities to fund projects which
contribute to self-sufficiency. The foundation supports income generating activities, also helps in
reducing illiteracy levels supporting the enrolment and admission of children to schools
especially those who are disadvantaged. Safaricom foundation formed partnerships with Kenya
wildlife service and the Kenya forest Service to protect forest and water catchment areas to
ensure no encroachment by the population takes place (www.safaricom foundation.com). In the
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health Sector the foundation supports various health centres and hospitals by donating
ambulances and equipment; mobile clinics, counseling and helping women with reproductive
health needs. Safaricom company was instrumental in spearheading a campaign dubbed
‘Kenyans for Kenya’ where companies come together to raise money for relief, this was a very
successful campaign calling upon Kenyans to contribute to other Kenyans facing serious hunger
in North Eastern part of Kenya. This initiative was meant to assist hunger victims since the
government was doing little to provide relief food despite being cautioned by experts that
drought was imminent in Turkana and other parts of North Eastern. This exposes lack of disaster
preparedness and good will from the government. Kenyans contributed in excess of Kshs100
Million. Critics however say that these are short term temporary measures which need to be
addressed since the government is in position to plan and allocate funds for such emergencies
instead of reacting after the damage has been done (Safaricom annual report, 2010).Social
identity theory, stakeholder theory organizational justice, and social exchange theory underpin
the relationship between employee’s perception on benefits of CSR and their attitudinal and
behavioral outcomes.
1.1.1 The concept of perception
Perception refers to constructing an understanding of the social world from the data we get
through our senses. Thus, perception “refers to the process by which we form impressions of
other people’s traits and personalities.”(Michener,DeLamater and Myers, 2004). You may have
noticed that by referring to “our senses” as the means of data collection the authors may have
placed too much emphasis on its perception component, which the first two definitions clearly
avoided. In other to shed more light on this concept it is important for you to pay attention to the
following elements of the above definitions of perception listed by Rao and Narayan (1998):Our
attention, feelings and the way we act are influenced by our environment; perception helps you
to gather data from your surroundings; process the data and make sense out of it; in perception it
is sometimes difficult to separate the information from the action; it is basically a process of
gaining mental understanding and perception guides the perceiver in harnessing, processing and
channeling relevant information towards fulfilling the perceiver’s requirements.
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According to Rao and Narayan (1998), they emphasize that perception ranks among the
important cognitive factors of human behavior or psychological mechanism that enable people to
understand their environment. In their own words, “perception is the process whereby people
select, organize, and interpret sensory stimulations into meaningful information about their work
environment Rao and Narayan (1998). They argue that perception is the single most important
determinant of human behavior, stating further that there can be no behavior without perception.
Though focusing on managers in work settings, Rao and Narayan draw attention to the fact that
since there are no specific strategies for understanding the perception of others, everyone appears
to be left with his own inventiveness, innovative ability, sensitiveness and introspective skills to
deal with perception.
1.1.2 Corporate social responsibility
For any organization wishing to enhance CSR, the management must exhibit social conscience in
their operations which goes beyond participating in community projects or donating money
to projects (Thompson, Petarafet al, 2010) .To be able to adequately plan for social
responsibilities the management must consider four types of social commitment thus economic,
legal, ethical and discretionary social responsibilities (Pierce and Robinson, 2011). The
organization’s decision on whether or not to engage in Social responsibility is largely dependent
on the stance assumed by the organization. The organization can take up a posture of Laissez-
faire which in French means let do. This means that the organization only undertakes
responsibility of generating profit and interest for the shareholders. Secondly an organization can
take posture of enlightened self interest where the management realizes there is a long term
benefit of managing relationships well with other stakeholders. As a forum for stakeholder
interaction the management tends to seek to balance the various stakeholders’ interests. Lastly
organization can view itself as a shaper of society and this could be its sole reason of existence
(Johnson, Whittington et al, 2011).
A company can choose to participate in a number of different socially responsible endeavors and
it is this then that coins its strategy for CSR (Thompson, Peterafet al, 2012). A CSR strategy has
five components thus it should observe ethical principles in operating the business. Ideally an
unethical conduct would go against the company’s quest of being ethical. Secondly, it could
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entail organization making charitable contributions, supporting the community service and
reaching out to making a difference in the lives of individuals. Thirdly, company taking action to
protect the environment from any adverse impact (especially those stemming from its own
activities). Fourthly, taking actions to create a work environment that enhances the quality of life
for employees for instance Safaricom has a nursing station for mothers with small infants. Lastly,
the organization taking deliberate effort in building a diverse workforce such as one with the
right mix of men and women and even different nationalities.
In light of the above many companies have started blowing their own trumpet to what benefits
their CSR strategies have through ads, websites in order that they can highlight their actions. In
creating a corporate image of being socially responsible then the company has to create
perception to Safaricom employees that it contributes to attracting and retaining competent
people ,community development, it supports artistic and social activities and that its generally
trying to improve the welfare of society as a whole (Keller, Apéria and Georgson,2008).
1.1.3 Benefits of Corporate Social Responsibility
As organizations strive to optimize their operations their main source of inputs that is raw
materials, human resources emanate from the society. Therefore managing to balance
stakeholders ‘needs is one major relationship that they must nourish (Porter 1985). This largely
helps in attracting the best expertise in terms of human resources as people will be drawn to
working for brands they believe in. For instance, Safaricom has many students aspiring to work
for them.
Secondly, any organization seeking to expand its operations will find it easy to attract Investors
if it is socially responsible. Outstanding performance and optimism shared by the then CEO of
the leading mobile Services Michael Joseph who told the Economist that “getting phone service
to the underprivileged in Africa has been hugely more successful than aid” ( Wealth Daily
newspaper, Monday June 23rd
2008, Hopkins).It was this that fuelled Safaricom in quarter two to
float its shares to the public to realize $800 million (Ewing, Barclays May 30th
, 2008). It was
therefore no wonder when the Safaricom shares were oversubscribed to a tune of up to 200%.
This was all because they wanted to be identified with the number one mobile operator of the
day.
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Thirdly, out of organizations participating in social issues and communicating the same to the
consumers at large then customers get the impression that they are cared for. This then causes
them to have a deeply entrenched brand loyalty that is difficult to break, Safaricom strive to
ensure that their activities are socially responsible (Porter and Kramer (2006).
1.1.4 Safaricom Company limited
The Safaricom established a Foundation in August 2003 and is a registered charity funded by
Safaricom Limited and the Vodafone Group Foundation. The work of Safaricom Foundation is
an expression of the Company’s “Passion for the World around Us”. The Foundation provides a
formal process for charitable contributions to communities, community groups and Non
Governmental Organizations (NGOs) in Kenya who are key partners in responding to social and
economic development issues (Safaricom foundation, 2011). It supports initiatives/projects that
provide sustainable solutions to the most pressing social challenges. Its specific focus areas are
Education, Health, Economic Empowerment, Environmental Conservation, Arts and Culture,
Music and Sports. The Foundation also responds to disasters and humanitarian emergencies. So
far, the Foundation has implemented more than 500 community projects spread across the
country at a cost of kshs over 1 billion in the last seven years. Culturally, the services are all
geared towards growth. Safaricom Foundation seeks to make positive contributions to
communities in direct ways through value added services and financial support for community
projects. (Safaricom foundation, 2011) It has partnered with communities and community groups
to implement activities that contribute towards their economic self sufficiency by supporting
income generating projects such as animal rearing and small scale industries and by working
with the disabled to generate income for their livelihoods.
The Foundation seeks to support the achievement for education for all by equipping educational
institutions. Due to the emergence of other sources of funding like the Constituency
Development Fund (CDF), which has a provision for the funding of schools, the Foundation has
in recent years focused its support towards schools providing learning opportunities for children
with special needs and the girl child (Safaricom foundation, 2011). The Foundation aims to
contribute towards reducing illiteracy by supporting the enrollment and retention of children in
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schools, including children with disabilities. This effort contributes towards the Millennium
Development Goal of increasing access to education at the primary level. The Foundation has
supported the construction and equipping of classrooms, libraries and laboratories in order to
provide a satisfactory learning environment for children.
The Foundation’s support in environmental conservation entails supporting innovative
community projects, like protecting and fencing forests, tree planting, protecting and conserving
wildlife, mitigating against human/wildlife conflict and community clean-up campaigns. The
Foundation has supported the “Save the Elephant” project to implement an innovative elephant
tracking project and has partnered with the David Sheldrick Wildlife Trust on a de-snaring
project (www.safaricomfoundation.com). These partnerships are some examples of initiatives
that contribute towards ensuring that man lives in harmony with his surroundings. There have
been numerous tree planting initiatives in the Aberdares, Ngare .Ndare and other communities.
These CSR initiatives have also helped to improve the perception of the company among its
staff, particularly when staff becomes involved through payroll giving, fundraising activities and
community volunteering.
1.2 Research Problem
Corporate social responsibility has become an important area of focus for companies’ today.
Involvement in charity ranges from cash and material donations, scholarships, community
development and environmental cleanups. This is a far cry from the doctrine of Friedman (1970),
which states that the one and only responsibility of a firm is to engage in activities that will
increase its profits within the confines of the law. Corporate social responsibility is now an
integral part of what a company is about. However, no matter how it is specifically defined,
corporate social responsibility cannot be a separate or sometimes equal element in the collection
of strategies that propel a company towards its ultimate goals. Real corporate social
responsibility is linked to, and an integral part of corporate strategy.
Several studies have been conducted on corporate social responsibility in the context of
Safaricom limited. Mulwa (2001), Kiarie (1997) and Kweyu (1993) studied employees’ attitudes
towards corporate social responsibility in selected Kenyan companies. The studies have
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investigated the impact of CSR on economic outcome such as corporate financial performance
and marketing methods such as customer relationship management. Mulwa(2001) study CSR at
the individual level that is mainly concerns with the external impact of CSR on potential
employees via mechanism such as corporate reputation. The focus is on organization
attractiveness towards prospective employees rather than current employees. The study supports
the idea that CSR can positively affect employee attitude. Whereas little has been said about the
influence of CSR on employee’s performance through job attitude. Safaricom limited employees
actively participate in corporate social responsibility. An employee is given a chance to come up
with a project; his or her proposal will be presented to the management team in charge of
corporate social responsibility. Once it has been accepted he /she will be the leader of the project
to ensure that everything is implemented. Safaricom ensures that each employee who participates
in any corporate social responsibility project earns points and employees are appraised based on
their performance and participation in CSR. There is salary increment for those employees who
participate in CSR; this motivates employees to be part of corporate social responsibility.
Kwalanda (2007) studied corporate social responsibility practices at Safaricom Limited and
found that corporate social responsibility was a key component of both corporate and business
strategies. The study also found that there was a plan, budgetary and staff allocations for
corporate social responsibility. The purpose of the study was to enable the company attain a
positive corporate brand image. Kamau (2001) investigated the awareness of the social
responsibility concept among managers in Kenyan firms and concluded that there was indeed
awareness but lack of positive implementation of the concept. A study by McWilliams and
Siegel (2001) found that corporate social responsibility is only a way to attain differentiation and
has no effects on profits and financial performance. Ayele (2003) in a study of social
responsibility practices of polythene manufactures in Kenya concluded that though management
of these firms was aware of the concept, little was done to implement it. Gichane (2004)
conducted a survey of corporate social responsibility practices by Kenyan companies listed in the
Nairobi Stock Exchange. The survey concluded that larger companies were more aware of the
social responsibility concept and applied it more. More closer though was a study by Ominde
(2006) on the link between corporate social responsibility and its link to strategy among
companies listed in the Nairobi Stock Exchange. She found that companies studied engaged in
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corporate planning, and the corporate plan included a corporate social responsibility strategy,
which was viewed as crucial for achieving business success.
Recently the emphasis on CSR has shifted from unilateral profit oriented to multilateral social
benefit (Valentines& Fleischman 2008). However growing attention has been given to CSR,
many studies have focus on stakeholders outside the corporation. Less focus has been paid to
internal stakeholder such as employees. Therefore there is the need to examine the effect CSR on
its important stakeholders. Employees’ perception of an organization’s ethics and social
responsibility may influence their attitude and performance, which in turn will have effect on
their organization. There is therefore need for a detailed and focused study to establish
employees’ perceptions of benefits of corporate social responsibility. This study seek to answer
the following question: What are Safaricom employees’ perceptions of benefits of corporate
social responsibility?
1.3 Research Objective
To establish employees’ perceptions of benefits of corporate social responsibility by Safaricom
Limited.
1.4 Value of the Study
Corporate Social responsibility is a very important aspect of the organization in establishing a
human face that the society can relate to. The impact that CSR has on helping the organization
establish a competitive advantage over its competition is a beneficial concept that would be
relevant to players even outside telecommunication and even researchers wanting to dig into the
topic further. Findings from this study will enable management to draw the employees’
perceptions on the benefit in the CSR. It may help the shareholders and other stakeholders
change their view in favor of engaging on corporate social responsibility more than before.
Multinational corporations within the food and beverage industry and other industries can draw
great learning from this study. In essence organizations that may be hesitant on engaging on CSR
will now have greater and deeper insights as to the intangible benefits of this engagement.
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The study was significant as the researcher hopes that the study will give Safaricom reason to
rethink and be more active in participation in the CSR projects specifically in giving the
information that affects them in regards to what affects the sustainability of CSR projects. The
research is also aimed at refocusing the CSR projects, especially considering that Safaricom
concentrates mostly on sponsorship of events that promotes well being of the society. It is hoped
that with insight from this study, CSR scope could be expanded to cover all aspects that might be
causing the limitations in achievement of those projects objectives.
The study provided background information to research organizations and future researchers
who would want to carry out further research in their area of study. It also facilitated individual
researchers to identify gaps in the current research and carry out various researches in those
areas, especially given the limits and constraints contemplated for this study. The study was
significant to any other organizations in Kenya who take part in CSR projects by giving them an
opportunity to be more active in undertaking and sustaining CSR projects. The organizations, it
is hoped, will find the results of this study and the subsequent recommendations useful in terms
of re-engineering their CSR activities to reflect the needs of the local communities as well as
ensure that the corporations reap benefits globally associated with CSR.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter presents theoretical, conceptual and empirical literature along the theme of the
study. First, literature on the theoretical underpinnings of the study is presented followed by
literature on corporate social responsibility and its aspects. Lastly the chapter presents literature
on management perception of corporate social responsibility, which is the main focus of the
study.
2.2 Theoretical foundation
Social identity theory, stakeholder theory organizational justice, and social exchange theory
underpin the relationship between employee’s perception on benefits of CSR and their attitudinal
and behavioral outcomes.
2.2.1 Social identity Theory
Social identity theory was originally proposed by Tajfel and Turner (1979). It is a theory about
perception of psychological basis of intergroup discrimination. Social identity theory is concern
with both the psychological and sociological aspect of group behavior. It studies the impact of
individual perspective, social categorization and group distinctiveness on individual‘s attitude
and behavior (Cinnirella 1988). Social identity theory suggests that individual categorize
themselves as members of a certain social group. The Individuals may achieve positive self-
esteem when they sense an in-group identity that differentiates them from the out-groups. By
doing so, their behaviors will conform to the group (Taifel, 1982) Tuner,(2001) also argued that
individual see themselves more as similar representative of their in-group. Their reactions thus
are not regards as individual behavior but as a common characteristic of their group.
In this study employees are the individuals who attempt to achieve positive social identity from
their perception of CSR. According to social identity theory a corporation’s engagement in CSR
will promote employees’ identification with their corporation. The identification will lead to
positive reaction to the organization’s CSR program (O’Reilly & Chatman 1986, Rodrigo
&Arenas 2008).
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2.2.2 Stakeholder Theory
Stakeholder theory is a theory of organizational management and business ethics that addresses
morals and values in managing an organization. The theory postulates that companies should
serve the interests of a number of groups; not only that of shareholders (Freeman, 1984). This
approach is broad since it articulates management policies and attends to diverse stakeholders.
Accordingly, organizations should acknowledge their legal and moral obligations to all
legitimate stakeholders, both internal and external, individual and group, institutional and
otherwise. From the ethical perspective, organizations have an obligation to treat all stakeholders
fairly.
2.2.3 Organizational Justice Theory
Organizational justice is the study of people’s perception of fairness in the organization. It refers
to the way in which employees determine if their organization treats them in a fair way. The
study of organizational justice has progressed steadily since Adams (1965) introduced the
concept of distributive inequality. Justice is a basic social expectation which will motivate work
behavior (Trevino & Weaver 2001). The perceive justice will employees’ subsequent attitudes
and behavior (Moorman 1991). Thereby, when employees perceive justice, they will react
positively to their organizations. Organizational Justice and CSR share common principles (to be
ethical to be fair) and similar outcomes (positive work attitude and behaviors) (Folger,
Cropananzo &Goldman 2005).That is employees experience and evaluate their corporation’s
CSR program. The CSR perception is expected to function as a fairness measurement to guide
employees’ decision about their relationship with their corporation ( Liao &Rupp 2005).The
extent of the fulfillment of fairness will affect employees’ work attitude and behaviors.
Social exchange highlights that social behavior is the result of an exchange of a process (Blau
1964). The exchange refers to the reciprocal behavior (Konovsky& Pugh1994). Specifically if
employees feel happy when they are working in their corporation, they are likely to be actively
support their corporation as mutual social exchange. Sometimes employees may even engage in
extra- roles behavior to reciprocate the treatment that they receive from their organization (Organ
1990). Previous studies have shown a significant relationship between perceived organizational
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support and individual extra-role behavior based on the reciprocal rationale (Moorman 1993,
Tepper& Taylor 2003, Gonzales &Garazo 2006). Based on social exchange theory, when the
CSR programs fulfill employees expectation employees are likely to show positive attitude will
in turn lead to their efforts in support of corporation such as extra-role behaviors (Organ &Lingl
1995). Hence the social exchange could explain the relationship that perceives CSR would lead
to employees’ work attitude and behavior.
2.3 Benefits of Corporate Social Responsibility
When a company has corporate social responsibility initiatives, employees are more proud of and
committed to the organization, this is because our personal identities are partly tied up in the
companies we work for. If my company is saving the world, I am too, so my association with the
company reflects positively on me and makes me feel good about the work I do for the company
Wood and Jones (1995). Employees’ perceptions of their organizations’ concern for community
and environment is linked to their level of organizational commitment. That is, the higher an
employee rates their organization’s corporate citizenship, the more committed they are to the
organization Peterson (2004). Organizational commitment has previously been linked to
favorable outcomes for companies including increased job satisfaction, reduced intentions to
turnover and increased job involvement. Commitment enhances employees’ ratings of corporate
image and positive image increases employees’ commitment. It make sense that knowing about
the good deeds of an organization might make an employee more eager to discuss their company
with outsiders, as well as feeling more committed to their organization which is doing these good
things(Hess et al., 2002). Either way, perception of CSR is one of many factors that impacts
commitment.
Companies believed to have a strong CSR commitment often have an increased ability to attract
and to retain employees (Turban & Greening 1997), which leads to reduced turnover,
recruitment, and training costs. Employees, too, often assess their companies CSR performance
to decide if their personal values clash with those of the businesses at which they work. Firms
may benefit from socially responsible actions in terms of employee confidence and productivity
(Parket&Eibert 1975; Soloman& Hansen, 1985).The role of corporate social responsibility on
employees is becoming more present in the business world, one of the reasons being that
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successful companies should attract, hold the best work force. If employees are satisfied and
attach the company, they will recommend to friends and family as a good employer
(Bhattacharya et al., 2008).In the classical approach, many companies consider that the client is
only interested in the final product that he buys, and not necessarily in how it is produced.
Currently, however, consumers begin to evaluate companies in terms of working conditions of
the company. Quality of products or services of a company depends to an extent of the degree of
motivation and training of its employees. That is why the company should look at employees
from the stakeholder theory perspective and consider their requests.
Promoting corporate social responsibility inside the company and encouraging employees to
participate in these activities, allows the companies to develop a muscular relation with its
internal stakeholders (Harwood et. al, 2008). When the level of the quality of relationship
between a company and employees improve, the customer satisfaction increases as well, and this
cycle of success leads to better profit margin (Schlesinger and Heskett, 1991). CSR can enhance
specific employees' attitudes at work (e.g. organizational justice, organizational trust,
organizational commitment, and satisfaction at work) through identification. CSR can also affect
the social exchange dynamics between employees and the corporation through its alteration of
the identification processes (Flynn, 2005). As a result, CSR can ultimately affect employees'
behaviors and consequently Corporate Organizational Performance.
As early as 1980 it was identified that corporate social responsibility not only benefits
employees, but can also bring benefits to the business. Corporate social responsibility not only
benefits employees, but also delivers business benefits in terms of more committed, motivated
employees (Business in the Community, 2002; Murillo & Lozano, 2006; Palimeris, 2006). Many
studies report that CSR can enhance a business’s reputation (Murillo & Lozano, 2006) states that
CSR results in a more professional image and this can lead to an increase in trust and loyalty
from stakeholders. It has also been acknowledged that CSR can provide a competitive advantage
through providing a more prominent profile and market position (Murillo & Lozano). Other
benefits include improved word of mouth and public relations, which can then lead to increased
sales and revenue.
14
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter sets out various stages and phases that are followed in completing the study.
Specifically the following subsections are included; research design, target population, data
collection instruments, data collection procedures and finally data analysis.
3.2 Research Design
This study is approached through the use of descriptive research design. According to Mugenda
and Mugenda (2003), descriptive survey design helps a researcher gather, summarize, present
and interpret information. The design chosen for the study is consider appropriate for this study
because of large number of respondents expected to participate in the study and the fact that data
will be collected at one point in time.
3.3 Target Population
Kombo and Tromp (2006) defines population as a group of individuals, objects or items from
which samples are taken for measurement or it is an entire group of persons, or elements that
have at least one thing in common. Data that has been collected comprise of two sources that is,
primary sources. The target population comprises all the 100 employees at Safaricom Limited.
The study will be a census survey.
3.4 Data Collection
Primary data used; the respondents are the 100 employees, regardless of their rank. Data is
collected through a semi structure questionnaire. The questionnaire consists of two sections.
Section one collects biographic data while section two focus on employees’ perceptions of
benefits of corporate social responsibility to Safaricom limited. The questionnaire is given to the
project manager by the researcher to distribute to the staff. The completed questionnaires are
collected by the researcher within a period of one week.
15
3.5 Data Analysis
Data is analyzed using descriptive statistical measures of standard deviation, frequency
distribution, percentage based on the questionnaire. The findings are presented in tables, pie
charts, graphs.
16
CHAPTER FOUR
DATA ANALYIS, FINDINGS AND DISCUSSION
4.1 Introduction
This chapter presents analysis and results from data collected through questionnaire targeting one
hundred (100) employees drawn from Safaricom Limited. The data was analyzed using content
analysis based on meanings and implications emanating from respondents’ information.
Specifically, it starts with the analysis of the general information on the respondent, and then
proceeds to results on employees’ perceptions on benefits of corporate social responsibility at
Safaricom limited in Kenya. Mean was used as a good indicator of employees’ perception of
benefits of corporate social responsibility. Presentation of findings is through pie charts, tables
and graphs as these are easy to interpret.
4.2 Response Rate
The researcher distributed questionnaires to the Safaricom employees through project officer.
The targeted 100 respondents in the organization were all available to undertake the
questionnaires and this made a response rate of 100%. The data provided was taken to be a true
representation of the respondents’ views due to the independence of the study carried out from
the organization.
4.3 Background Information
A survey instrument inform of a questionnaire was used to capture data on employees
perceptions of benefits of corporate social responsibility. The structure of the questions started
with the general questions followed by questions targeting benefits of corporate social
responsibility.
4.3.1 Length of service
The length of service was varied with 20 % of respondents having worked below one year, 20 %
between 1 -3 years ,45% between 3 -5 years and 15% above 5 years. As show in figure 4.1
17
Figure 4.1: Distribution of the respondents by length of service
Source (Martha, 2014)
The results showed that the higher percentage of the respondents had worked in Safaricom for
more than 3-5 years (45%). This provided a good ground for CSR projects sustainability analysis
as the staff had adequate long standing knowledge on benefits of CSR.
4.3.2 Level of Education
On the level of education 10% attained secondary school certification 20% attained Diploma
another 20% Tertiary (college) level, 30% attained University level - Degree and 20% had
Master‘s degree level. The results are presented in Figure 4.2
Figure 4.2: Classification of respondents by level of education
Source (Martha, 2014)
below one year
1-3 years
3-5 years
above 5years
0
5
10
15
20
25
30
35
40
45
Secondaryschool
certificate
Diploma Tertiary level University level Master'sdegree
Level of education
level of education
18
The results above indicated that at least the respondents had attained a level of education beyond
secondary school level, meaning they were literate enough to handle CSR projects sustainability
issues appropriately with minimal difficulties if any.
4.4 Corporate social responsibility activities
The questionnaire sought response on the corporate social responsibility activities carried out by
Safaricom Ltd. The Company supports projects that provide sustainable solutions to the most
pressing social challenges with specific focus to areas like Education, Health, Economic
Empowerment, Environmental Conservation, Arts and Culture, Music and Sports. The results
reveal that the foundation also responds to disasters and humanitarian emergencies. From the
responses received these initiatives includes; Good working conditions for employees,
Employees welfare, Truthful advertising, Environmental conservation and involvement in
Community activities.
Moreover, the study inquired on how Corporate Social Responsibility activities are identified. It
was clearly evident that first a request for sponsorship is sent by completing the form and
attaching relevant documentation then through reviewing sponsorship requests by an internal
committee which is done once a month, Corporate Social Responsibility activity is identified. On
further probing to which areas that corporate social responsibility activities cover, the responses
given revealed clearly that the specific focus areas are Education, Health, Economic
Empowerment, Environmental Conservation, Arts and Culture, Music and Sports. The findings
further indicated that it also responded to disasters and humanitarian emergencies. The study
inquired some of the corporate social responsibility activities or projects undertaken in the last
one year in the following areas; Responses gotten from the field revealed that, the Foundation
had supported 59 economic empowerment projects worth 67 million. The foundation has
partnered with the Kenya Community Development Foundation, to provide drip irrigation and
greenhouses to communities in arid and semiarid areas of the country, in order to provide food
for domestic consumption, as well as foodstuff for sale to generate income. The initiative
covered areas including Yatta, Kwale, Garissa, Turkana, and Marsabit.
19
With the aim of providing quality education to Kenya’s children, the Foundation has constructed
and equipped libraries and laboratories in schools. The Foundation invested in infrastructural
development and the provision of specialized learning equipment for special schools and schools
in extremely marginalized areas. The Foundation supported 60 education projects worth Kshs. 81
million. Our support to institutions supporting children with special needs included the
production of audio books by the Africa Braille Centre, construction of a vocational training
Centre at Reverend Muhoro School for the Deaf in Mukurweini and the donation of a school bus
to Joytown Secondary School in partnership with Isuzu/General Motors.
The Foundation has invested in supporting initiatives in environmental and wildlife conservation
through participatory conservation activities, public education and sustainable preservation of
natural resources. The Foundation supported 11 environmental conservation projects worth
Kshs.15 million. With due recognition to the growing challenge of e-waste management, the
Foundation funded the purchase of a state of the art e-waste grinder for Computers for Schools
Kenya. The grinder complements their already existing e-waste management center and will
increase their grinding and recycling capacity. The Safaricom foundation was also involved in
tree planting in the Nairobi national park.
The Foundation supported initiatives that increase access to affordable healthcare, including
specialized health care that is often out of the reach of many Kenyans. The Foundation partnered
with health care service providers and communities in constructing and equipping health
facilities, providing health information and services through medical camps and supporting the
provision of specialized health services. The Foundation funded 25 health projects worth
Kshs.38 million. The Foundation has ran a series of medical camps, providing a wide range of
preventive and curative services in Turkana South, Mt. Elgon, Runyenjes, Sabatia, Gichugu,
Karachuonyo, Kitui West, Mogotio and Mwatate. At these camps, diabetes and hypertension
information and management services, eye care, dental care, VCT and family planning,
paediatric care and general medical services are provided. Averages of 3,000 people were
provided with free health services at these camps. In order to assist patients with renal failure a
kidney dialysis machine was donated to Kenyatta National Hospital.
20
The Foundation partnered with the Kenya Red Cross Society and Action Aid International –
Kenya to implement large scale community water projects, under our Maji na Uhai’ initiative.
This year the Foundation committed funding for large scale water projects in arid and semi-arid
areas of the country such as Katalwa, Gachoka, Garbatulla and Makueni. The Foundation funded
8 water projects worth Kshs 24 million. The Mumbuni – Katalwa Water Supply Project is an
initiative of the Kenya Red Cross (KRCS) in conjunction with the Mumbuni and Katalwa
communities, funded by the Safaricom Foundation. The Katalwa community used to walk 15km
to draw water from the river or use raw water collected from ground water catchments (pans),
whereas the Mumbuni community used raw water direct from the Tana River in their
neighborhood. A total of 8,500 persons comprising 3 primary schools, I dispensary and one
market center are currently benefiting from the project.
The Foundation partners with organizations and community groups to preserve and promote
Kenya’s natural heritage in arts, music and culture. The Foundation donated Kshs.23 million to
fund 2 projects in this category. The Foundation partnered with the National Museums of Kenya
and the Kenya Museum Society to renovate the Louis Leakey Auditorium. The Auditorium is
now a state-of-the-art multipurpose auditorium that is contributing towards revenue generation
for the Museum. From the results of findings, for the last one year, corporate social responsibility
has covered the five major areas of economic empowerment projects, Environmental
Conservation, Health, Water and Arts, Music and Culture. The study further explored factors put
into consideration by the company in its corporate social responsibility (CSR) endeavors. It was
evident that most of the respondents indicated both institutional and cultural environment factors
focused to offer inclusive solutions that would socially and economically empower the society
whose clients is part of and other stakeholders.
4.5 Benefits of Corporate Social Responsibility
The respondents were requested to give their opinions on how employees benefit from corporate
social responsibility. The findings are presented in table 4.3 from the responses presented in table
4.3 it emerged out clearly that employees really do benefit from corporate social responsibility.
21
Table 4.3: Means and Standard Deviations for responses on benefit attributes.
STATEMENT ON BENEFITS 1 2 3 4 5 MEAN STANDARD
DEVIATIONS
1. Corporate social responsibility has
made a significant contribution to
growth in the company market share
0 10 12 52 16 3.74 0.84
2. Corporate social responsibility has
led to organization learning at
Safaricom Limited
19 5 37 18 21 3.17 1.34
3. Corporate social responsibility has
led to organization new innovations
0 14 46 17 23 3.49 1.0
4. Corporate social responsibility has
contributed to committed, pride,
happy and engaged employees at
Safaricom Limited
0 2 57 35 6 3.45 0.64
5. Corporate social responsibility has
enhanced the company’s reputation
0 19 46 17 23 3.59 1.0
6. Corporate social responsibility is
associated with increase in employees
earnings
41 28 31 0 0 1.90 0.84
7. Corporate social responsibility
contributed has improved Safaricom’s
relationship with the investors
0 7 63 29 5 3.44 0.68
8. Corporate social responsibility has
led indirect increase in sales
13 37 42 8 0 2.41 0.81
9. Corporate social responsibility has
contributed to the optimization of
corporate image
1 33 32 19 15 3.14 1.07
10. Corporate social responsibility has
led to Improvement in the working
environment within the organization
3 22 23 17 24 3.04 1.26
22
11. Corporate social responsibility is
associated with attraction and
retention of qualified employees
0 0 11 21 68 4.57 0.68
GRAND MEAN 3.27
Source (Martha.2014)
In Safaricom Limited corporate social responsibility was viewed to offer the company’s
improved relationships with key stakeholders, more loyal customers and an overall improvement
of the business’ standing in society. It was also seen as a key determinant in shaping the
relationship and future of the company with their stakeholders and an opportunity to meet
societal. It was evident that the corporate social responsibility initiatives not only gave the
company good publicity but also helped in the uptake of its products by the public. The research
established that the work of Safaricom Foundation is a reflection of Safaricom Limited’s believe
and slogan “passion for the world around us”. The study also sought to establish various views
pertaining corporate social responsibility initiatives on the following areas;
4.5.1 Growth in market share
The respondents admitted that corporate social responsibility initiatives attract a lot of publicity
which adds a lot of value to brand visibility. By investing a lot in social initiatives the company
has won the heart of the public which has in turn helped in the uptake of the company’s product
in the market. CSR has endured the Organization in to the heart of the community who are the
customers and this has helped in growing its market share which currently stands at 65%.
4.5.2 Attraction and retention of high quality employees
The findings further revealed that corporate social responsibility is also extended to employees
through innovative employees’ welfare initiatives. Safaricom Ltd has established a day care
center where the young parents can bring their young children to work and see them during break
times. This initiative has attracted and retained high quality, committed and engaged employees.
The results further reveals that when employees view their organization’s commitment to
socially responsible behavior more favorably, they also tend to have more positive attitudes in
other areas that correlate with better performance, such as customer service. Corporate social
23
responsibility is important driver of employee engagement and retention. Corporate social
responsibility perceptions shape employees’ subsequent attitudes and behaviors towards their
firms. Job applicant and employee perceptions of a firm’s corporate social responsibility affects
how attractive these individuals perceive the firm to be, and employee satisfaction with corporate
social responsibility leads to enhanced job satisfaction, organizational commitment and
organizational citizenship. The study further probed the connections between corporate social
responsibility and company reputation where it was evident that corporate social responsibility
practices or initiatives endures the organization in the hearts of the community in which it
operates in.
4.5.3 Enhance brand image and reputation.
The findings show us that Safaricom Limited benefits of being corporate social responsibility is
enhanced brand image and reputation which is fundamental in e.g. maintaining and attracting
new customers and employees. Their brand is their most valuable assets. Corporate reputation
and brand image has in today’s competitive world become more vulnerable (Smith, 2003).
Safaricom limited is aware of that and the way for them to stay competitive is to work with
values over long term. (Forselius, 2006). Their image and reputation is critical to their
commercial success and long term sustainability (Safaricom limited Annual Report, 2011). And
having a good image and reputation is much more important in a country with very high level of
educated people, which is the case with Kenya. A good image and reputation and therefore help
Safaricom to create loyalty amongst their customers, business partners and NGO’s which can
stronger their market position and empower the company. Having a good image and reputation
will bring financial corporate benefits through improved sales. Today’s consumers have become
increasingly sensitive to the corporate social responsibility performance of the companies from
which they buy their goods and services (Smith, 2002). And that is the reason why Safaricom
Limited has become so well known and loved in Kenya.
4.5.4 Commitment, pride and happiness
Other important and interesting results from the survey for this thesis are the answers on the
questions whether employees get more committed to and get more proud of the organization
through CSR activities and if these activities also cause more enjoyment in work. As described in
24
the literature review, at the beginning of this thesis, are pride, commitment and happiness
important determinants of employee loyalty. The following section will discuss the results of
these three topics and the possible management implications.
As shown in the table below, 90 employees of Safaricom answered that the CSR program has a
positive influence on their commitment to Safaricom ,38 employees ‘totally agreed’ with the
proposition and the other 46 just normally ‘agreed’ with the proposition. The other 15 employees
didn’t agree with the proposition, this doesn’t mean that these employees state that the CSR
program make them less committed, they just say that the CSR program doesn’t make them more
committed, they could have a neutral opinion about it.
Another indicator for employee loyalty is pride (Davis-Blake, et al., 2003), in the
Safaricom research is asked whether the employee feels that the CSR program of Safaricom
make them proud. As shown in the table below, are almost all the employees to a very great
extent that the CSR program makes them proud, 55 employees to a very great extend and 30
employees to a great extend. Just 5 of the 90 requested employees disagreed with the
proposition. One could say that in general a CSR program makes the employees of Safaricom
more proud.
4.6 Discussion
This chapter has presented the findings from the questionnaire. The questionnaire findings
suggest that the most common types of CSR practices are community-related, the most highly
identified benefits were business-related, and the most common motivations to engage in CSR
are related to the individual owner of the business. The major finding from the study is that the
management structure of a business appears to have the most significant influence on corporate
social responsibility engagement.
The results show a clear indication for a positive link between the CSR perception of the
employees and their level of commitment to, pride of and happiness in their work. All three
variables correlate positively with the CSR perception. Managerial implications from these
results are that managers, who want to increase the commitment and satisfaction of the
employees, should focus on the perception of employees about the CSR policy. When employees
25
are more satisfied about the policy and value the policy higher than they did before, these
employees could be more satisfied and committed to the organization. Increasing the CSR
perception can be obtained through several ways but one way is enlightened in this research.
Managers who want to increase the satisfaction of employees about certain CSR policies should
focus on increasing the awareness of importance of the policies. Employees get more
understanding about the policy decisions and therefore get more satisfied. Overall give the
results a clear indication for a positive relationship between the CSR perception of the employees
and employee commitment and satisfaction
The qualitative findings reinforce community-related corporate social responsibility practices as
the most common, and employee-related corporate social responsibility practices were also
common. The motivations of engaging in corporate social responsibility were found to be mostly
personal, but business benefits and issues within the community were also identified as
motivations for engaging in corporate social responsibility. Safaricom employees perceive
corporate social responsibility namely what organizations do, how they do it and the impact of
their behavior on society at large. They also infer that corporate social responsibility reflects
acting as a good corporate citizen, being ethical, obeying the law and being profitable.
The benefits for Safaricom limited to have a good corporate social responsibility include
enhanced brand image and reputation. They find their brand as their most important asset.
Having a good image and reputation increases sales as well as boosts employment relations. For
Safaricom Limited it is vital to harmonize employee relations. Employees of Safaricom stated
that by having good corporate social responsibility policies they attract, sustain and develop
human capital, and therefore improve their own performance. A final benefit of having good
corporate social responsibility embraces the management of crisis. They all improve their
management and control over risks and help exploits and prevents crisis before they occur. Risk
management is overall a way for Safaricom limited to avoid negative publicity and negative
consumer actions.
26
4.7 Managerial Implications
The relationship between Safaricom limited employees’ and CSR perception and work outcomes
in such a culture deserve special attention. The culture to be in a corporate culture might
influence and organization CSR programs. Thus it is necessary for researchers and managers to
take account of the cultural influence. When organizations engage in CSR- activities to foster the
satisfaction and commitment of their employees, they should notice which CSR activities are
most likely to have such effects. Even though there may be good reasons to show care for the
environment or to be involved in community activities, it is not self evidence that this will
enhance employees’ commitment and satisfaction. Thus when an organization has concrete goals
it wants to achieve its CSR- activities, it does well to specify whether these goals relate to work
attitude of their employees, to the image towards their customers, or to their goodwill in the
broader community , as different types of CSR- activities are likely to impact upon the responses
of different constituencies . That is, while the present data illustrate the importance of perceived
organizational morality and organizational involvement in CSR – activities for employees’
commitment and satisfaction, they also remind us that there is no ‘quick fix’ in that any type of
CSR –involvement is likely to benefit the organization regardless of its current concerns. If the
goal of the organization is to improve its imagine towards customers, different kind of CSR
activities may be required. This research is useful in this respect, as it helps understand some of
organizational CSR- activities, why it has these effects and whom this is most likely to impact
on.
27
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
This chapter will cover the following areas; summary, conclusion, recommendation and
limitation.
5.2 Summary
In summary, the purpose of this study is to obtain a better understanding of how Safaricom
employees perceive the benefits of corporate social responsibility activities developed by their
employer. The findings from this study reflect that several important aspects: All the respondents
agreed that corporate social responsibility activities had been of benefit to the organization and
also them as employees. This was reflected in the improved company image or reputation,
increased number of customers or market share, attracting outstanding talented employees as
well as improved profitability. The study revealed that Safaricom Limited, do practice corporate
social responsibility by choosing its own unique activities. The range of activities the firm was
involved in included good working conditions for employees, employees’ welfare, product
safety, truthful advertising and community based activities as well as environmental issues.
Implementation of CSR activities was largely done through employees, volunteers and other
stakeholders.
This study found that employees’ corporate social responsibility perception has effect on
employees’ work outcome. Employees play a big role their organizations and their perception on
corporate social responsibility will influence subsequent work outcomes. The corporate social
responsibility programs would therefore benefit both the corporations and their employees. It is
worth noting that Safaricom laid emphasis on staff involvement in corporate social
responsibility, thereby making use of available skills and expertise. Porter and Kramer (2002) are
of the view that by aligning charity and strategy, corporations do not only give money; they
donate distinctive capabilities and that can result in greater social good even as it strengthens a
company’s competitive edge Safaricom foundation corporate social responsibility movement
28
should thus consider a focus on engaging in ethics and CSR programs by actively
communicating good corporate social responsibility strategies with its stakeholders. Organization
would also benefit from effectively interacting with their employees on corporate social
responsibility issues. All in all this study provided suggestions organizations to have holistic
corporate social responsibility programs, including not only shareholders but also all their
stakeholders.
It was found that organizations engage in CSR for a range of reputational, operational, personal
and community benefits including: improved reputation; increased customer satisfaction;
increased sales; repeat business; harder working staff; greater staff retention; feeling good about
themselves; being a part of the community; to promote a cause; to save the environment; and to
support the local economy.CSR programmes can predict organizational competitiveness and
customer satisfaction in all types of organizations in general Safaricom Limited has build
competitive advantage through involvement in the above reviewed CSR activities However,
managers should take into account various micro and macro-environmental factors before
implementing them.
5.3 Conclusion
Based on the findings it is evident that most Safaricom engage in one or more forms of CSR at
any given time. It is also evident that the involvement in CSR is a deliberate action and not
merely accidental thus it is planned for and necessary resources set aside at any given time. A
winning formula in addressing CSR activities can be achieved by organizations harnessing a
common ground in choosing corporate and individual CSR activities. For instance giving out
food and clothing during festivities like Easter can work well for both the organization and the
employees. What the employees contribute being topped up by the employers. Another issue that
may raise concern in the future might be the extent to which CSR should be built into Strategy.
This is important if the organization is to drive its ideas through selection of CSR activities that
will tie well into their strategy long or short term.
In conclusion, Safaricom Limited thought that the more they engaged in CSR the higher the
chances of employees being loyal to them and having a competitive advantage over their
29
competitor as a way of attracted and retaining talented employees. This was owing to the fact
that they pegged their brand as being visibly involved in social issues.
5.4 Recommendation for further study
Further studies should also attempt to achieve a large sample across a bigger organization in the
country to determine whether the results can be generalized. The current research being a case
study; additional studies can be carried out on a wider scale. This could be through conducting
industry research on CSR different economic sectors, such as government, private and public
sectors and other economic sectors. The research carried out has shown some other existing gaps
in the relationship of CSR and competitive advantage. Thus some potential areas for further
research include reconciling stakeholders varied interests with companies‟ quests to fulfill
various CSR activities. Another area that would be of interest is how the governments arm can
enhance companies’ involvement in CSR without necessarily hampering their efforts.
For effective aligning of CSR to the Safaricom Limited’s corporate strategy, this study
recommends that, the management of Safaricom Limited should evaluate the outcomes from the
Foundation’s investments in order to understand if and how they positively impact on the overall
performance of the company. This would include performing market research that examines the
effects of CSR initiatives on strategic outcome like market share growth for Safaricom Limited
that would be particularly informative.
Safaricom Limited and the Foundation ought to engage the stakeholders more to enable them
perceive value in all CSR activities so as they support the firm’s engagement in it. This should be
particularly so for the employee who is a key stakeholder for any business enterprise.
Safaricom Foundation should endeavor to examine the potential value creation of CSR activities
and align this value to Safaricom Limited’s overall strategy.
5.5 Limitation of the study
The researcher encountered limitation of time. Time constraint was experienced due to the nature
of data that was to be collected as it needed authorization from various levels of authorities. At
the same time, the different components and variables that were many in number. The researcher
30
mitigated this problem by planning on manpower where a large team was involved in data
collection.
The other limitation was that some respondents feared disclosing information on Safaricom for
they feared breach of confidentiality. The researcher however assures them that the information
given would be treated with high confidentiality.
31
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35
APPENDIX: QUESTIONNAIRE
Section 1: General Information
1. Name of organization……………………………………………………..
2. Position of respondent in the organization…………………………………….
3. Level of education
Secondary ( ) Diploma ( ) College ( ) Degree ( ) Masters ( )
4. How many years have you served the department?
0-1 yrs [ ] 1-3yrs [ ] 3-5yrs [ ] over 5yrs [ ]
5. State types in Corporate Responsibility practices that your firm is involved in
Section 2: Benefits of Corporate Social Responsibility
1. The statements presented in the following matrix represent different benefits that accrue from
corporate social responsibility activities. Indicate the extent to which each statement applies to
Safaricom limited. Tick in the box that reflects your view. The numbers are interpreted as
follows:
1- Not at all
2- To a less extent
3- To a moderate extent
4- To a great extent
5- To a very great extent
36
STATEMENT 1 2 3 4 5
1. Corporate social responsibility has made a significant
contribution to growth in the company market share
2. Corporate social responsibility has led to organization
learning at Safaricom Limited
3. Corporate social responsibility has led to organization new
innovations
4. Corporate social responsibility has contributed to
committed, pride, happy and engaged employees at
Safaricom Limited
5. Corporate social responsibility has enhanced the
company’s reputation
6. Corporate social responsibility is associated with increase
in employees earnings
7. Corporate social responsibility contributed has improved
Safaricom’s relationship with the investors
8. Corporate social responsibility has led indirect increase in
sales
9. Corporate social responsibility has contributed to the
optimization of corporate image
10. Corporate social responsibility has led to Improvement in
the working environment within the organization
11. Corporate social responsibility is associated with attraction
and retention of qualified employees